New Tax Proposal in Florida
#1
New Tax Proposal in Florida
The Florida legislature has proposed eliminating the property tax assessed by local governments and increasing the state-wide sales tax by 2.5%.
I find many flaws with that idea. First of all, tourists will help pay to fund my local government whether I live in a tourist area or not. They're taxed to death already. More taxes may drive them away. Second, my property taxes are under $700 but my homeowners insurance is $2600 with a $3,500 ded. I think they're working the wrong issue!
The final point that breaks the camel's back is that the state govenment will determine how to dispense the taxes collected. Not an option I look forward to. All local communities are taxed based on how much fire and police protection they're willing to pay for, how good of schools they want, and what public utilities they find vital. Now a politician will decide how much money we get no matter what we paid in!
I've been a strong supporter of a national sales tax to replace our current income tax system. But, I don't feel this proposal is good for anyone!
I find many flaws with that idea. First of all, tourists will help pay to fund my local government whether I live in a tourist area or not. They're taxed to death already. More taxes may drive them away. Second, my property taxes are under $700 but my homeowners insurance is $2600 with a $3,500 ded. I think they're working the wrong issue!
The final point that breaks the camel's back is that the state govenment will determine how to dispense the taxes collected. Not an option I look forward to. All local communities are taxed based on how much fire and police protection they're willing to pay for, how good of schools they want, and what public utilities they find vital. Now a politician will decide how much money we get no matter what we paid in!
I've been a strong supporter of a national sales tax to replace our current income tax system. But, I don't feel this proposal is good for anyone!
#2
That would mean the tax here in Dade would jump to 9.5%, making it the highest in the state/nation! This is a really bad idea. It's really gonna hurt the economy of Florida. The residents won't be able to afford as much, and it will drive away the tourists! (That would make a 1 day ticket to Disney over $75.00! ). Maybe Dan'd was right about relocating out of state.
#4
[QUOTE=SandyBeach;123723]The Florida legislature has proposed eliminating the property tax assessed by local governments and increasing the state-wide sales tax by 2.5%.
This, like all proposals in favor of sales tax, is simply another tax break for the rich. Think about how much more someone will save on a multi-million dollar home than you will. Then consider that the poor pay very little income tax or property tax but would pay sales tax on practically everything they buy which is effectively a tax on their entire income, whereas high income folks would be paying taxes on only a very small portion of their income. That's why a sales tax is considered the most regressive form of taxation. & one further point, most if not all proposals to replace progressive taxes (graduated income tax, real estate tax, estate taxes for high value estates only) come from the republican side of the isle. the use of "fair" to describe sales tax is 1984speak.
This, like all proposals in favor of sales tax, is simply another tax break for the rich. Think about how much more someone will save on a multi-million dollar home than you will. Then consider that the poor pay very little income tax or property tax but would pay sales tax on practically everything they buy which is effectively a tax on their entire income, whereas high income folks would be paying taxes on only a very small portion of their income. That's why a sales tax is considered the most regressive form of taxation. & one further point, most if not all proposals to replace progressive taxes (graduated income tax, real estate tax, estate taxes for high value estates only) come from the republican side of the isle. the use of "fair" to describe sales tax is 1984speak.
#5
sales tax doesn't favor the rich at all.
ill give you 2 examples: (using the 9.5)
poor family buys a car (Dodge mini van) ~$20K = $1,900 in tax
poor family buys a car (mercedes E class) ~$60K = $5,700 in tax
poor family buys a house (Mobile home) ~$90K = $8,550 in tax
poor family buys a house (2500sqft beach) ~$600K = $57,000 in tax
ill give you 2 examples: (using the 9.5)
poor family buys a car (Dodge mini van) ~$20K = $1,900 in tax
poor family buys a car (mercedes E class) ~$60K = $5,700 in tax
poor family buys a house (Mobile home) ~$90K = $8,550 in tax
poor family buys a house (2500sqft beach) ~$600K = $57,000 in tax
#6
If you were to figure all taxes as a percentage of income, you'll find that a sales tax favors the wealthy more than any other. It also is the hardest on the poor, as it will represent a much higher percentage of income (which means it is the most regressive). Any type of flat tax will favor the rich.
#7
If you were to figure all taxes as a percentage of income, you'll find that a sales tax favors the wealthy more than any other. It also is the hardest on the poor, as it will represent a much higher percentage of income (which means it is the most regressive). Any type of flat tax will favor the rich.
Last edited by HonestBlues; 02-24-2007 at 07:01 PM.
#8
Take a flat income tax of 10%. Some poor soul making $10,000 pays $1,000 while someone making $100,000 pays $10,000. Which one do you think will hurt more? Let's face it, someone making only $10,000 can't really afford to pay any tax & shouldn't.. even sales tax. Someone making $100,000 can certainly afford to pay more than $10,000 and should.. if he has an ounce of patriotism. I don't know about you, but I'm damn tired of these tax breaks for people who don't need them while the rest of us struggle to just get by.
#9
Take a flat income tax of 10%. Some poor soul making $10,000 pays $1,000 while someone making $100,000 pays $10,000. Which one do you think will hurt more? Let's face it, someone making only $10,000 can't really afford to pay any tax & shouldn't.. even sales tax. Someone making $100,000 can certainly afford to pay more than $10,000 and should.. if he has an ounce of patriotism. I don't know about you, but I'm damn tired of these tax breaks for people who don't need them while the rest of us struggle to just get by.